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90-second guide to pension freedoms

Retirement should be an exciting time, and following sweeping pension reforms in 2015, there is more scope than ever to arrange your finances the way you want them.

Retirement should be an exciting time, and following sweeping pension reforms in 2015, there is more scope than ever to arrange your finances the way you want them.

For example, you can now continue to work and take some of your pension benefits – and can even access your entire pension savings and draw up your own investment strategy.

That flexibility is great, but there is a lot to weigh up when considering whether to touch your pension. And it may be in your best interests to stay in your defined benefit scheme.

Obtaining professional advice is therefore crucial.

Here's our 90 second guide to some of the key things you need to know.

Pension freedoms

Following pension reforms in 2015, anyone aged 55 and over can take their entire pension savings out as a lump sum, paying no tax on the first 25% and the rest taxed as if it were a salary at their income tax rate.

Taking a 25% tax-free lump sum could be a good idea if you have debt to pay of, such as a mortgage, but it will reduce your retirement income.

However, it's important to seek professional advice before removing your pension from its 'tax-efficient wrapper'.

Pension consolidation

It’s important to ensure that you get the best out of the contributions you’ve made and keep track of your pension portfolio to make sure it remains appropriate to your personal circumstances.

Consolidating your existing pensions is one way of doing this. Pension consolidation involves moving, where appropriate, a number of pension plans – potentially from many different pensions’ providers – into one single plan.

It’s vital that you review your existing pensions to assess whether they are still meeting your needs, considering various different aspects of the pension plan such as costs, performance, funds available and features.

What we do

Aberdein Considine’s independent financial advisers – who are authorised and regulated by the Financial Conduct Authority (FCA) - can guide you through the pension maze and help you tailor a plan to your circumstances.

Our advisers can help you with the following:

Setting-up pension plans

Review existing pension plans

Pension consolidation

Pension drawdown

Annuity advice

If you would like to speak to someone about your retirement options, click here.